How does a free app earn money?

Hello. I am a new game developer and going to launch a free app on different store. I would like to know how free game earns money. If the answer is only by giving ad then how I get these ads?
Please help me with reply. Thank you.

Here is how mobile app developers can make money from their “free apps”.

Here is how mobile app developers can make money from their “free apps”.

1) Using mobile ad networks like InMobi and AdMob is probably one of the best ways to earn by way of in-app advertising. These networks offer easy integration with apps, thereby helping you start earning your revenue almost immediately.

The only disadvantage here is that CPM rates are very low. This can initially put a lot of strain, especially if you are an amateur developer. But this will improve as your app’s popularity catches on with users.

2) Employing rich media ad networks such as Greystripe helps catch and sustain the interest of your viewers, sometimes even making them to return to you more often. Because these ads are appealing to the eye, they automatically attract more viewership and higher CPMs.

The downside here is that they also can put a strain on your resources, both in terms of server space and finances.

3) Singing up for ad exchanges can be of immense help to you, since it lets you integrate with several ad networks at one and the same time. This offers you much higher fill rates too, as compared to a single ad network.

The disadvantage with this is that you, as the developer, would have to spend more time and resources to optimize content for several types of ad networks. This may lower your net returns.

4) Getting sponsorship for a mobile app is the best way of getting assured high returns from it. Also, creating an app for the advertiser assures smoother and better integration of the app with the sponsoring brand.

The downside with this form of earning from an app is that the app has to be a perfect fit for the brand. Besides, this being an expensive affair, only the biggest publishers can hope to sustain a long-lasting relationship with the sponsoring brand. Hence, this is definitely not for amateur developers.

Thank You so much. I really appreciate it. I have few questions more to you. 1. You have mentioned about some ways to get ads. Can I use all of them for a single app? 2. What should you personally suggest me if I have to take only one way? I want my game to be popular and want to earn satisfactory money at the same time.
I didn't expect such a helpful quick answer. Thank you once again.

Originally Posted by johnmacklen

Here is how mobile app developers can make money from their “free apps”.

1) Using mobile ad networks like InMobi and AdMob is probably one of the best ways to earn by way of in-app advertising. These networks offer easy integration with apps, thereby helping you start earning your revenue almost immediately.

The only disadvantage here is that CPM rates are very low. This can initially put a lot of strain, especially if you are an amateur developer. But this will improve as your app’s popularity catches on with users.

2) Employing rich media ad networks such as Greystripe helps catch and sustain the interest of your viewers, sometimes even making them to return to you more often. Because these ads are appealing to the eye, they automatically attract more viewership and higher CPMs.

The downside here is that they also can put a strain on your resources, both in terms of server space and finances.

3) Singing up for ad exchanges can be of immense help to you, since it lets you integrate with several ad networks at one and the same time. This offers you much higher fill rates too, as compared to a single ad network.

The disadvantage with this is that you, as the developer, would have to spend more time and resources to optimize content for several types of ad networks. This may lower your net returns.

4) Getting sponsorship for a mobile app is the best way of getting assured high returns from it. Also, creating an app for the advertiser assures smoother and better integration of the app with the sponsoring brand.

The downside with this form of earning from an app is that the app has to be a perfect fit for the brand. Besides, this being an expensive affair, only the biggest publishers can hope to sustain a long-lasting relationship with the sponsoring brand. Hence, this is definitely not for amateur developers.

Thank You so much. I really appreciate it. I have few questions more to you. 1. You have mentioned about some ways to get ads. Can I use all of them for a single app? 2. What should you personally suggest me if I have to take only one way? I want my game to be popular and want to earn satisfactory money at the same time.
I didn't expect such a helpful quick answer. Thank you once again.

Sorry to disappoint you, but "johnmaclen" doesn't have a clue about your topic at hand. He merely cut/pasted an article from about.com and didn't attribute it so he could look smart and build a post count here. It is a common tactic adopted by so-called SEO scum.